Marketing_Management_14th_Edition-min

in February. Also, we will create buzz by providing samples to selected product reviewers,
opinion leaders, influential bloggers, and celebrities. Our training staff will work with retail
sales personnel at major chains to explain the Sonic 1000’s features, benefits, and advantages.
• February. We will start an integrated print/radio/Internet campaign targeting professionals
and consumers. The campaign will show how many functions the Sonic smart phone can
perform and emphasize the convenience of a single, powerful handheld device. This multimedia
campaign will be supported by point-of-sale signage as well as online-only ads and
video tours.
• March. As the multimedia advertising campaign continues, we will add consumer sales
promotions such as a contest in which consumers post videos to our Web site, showing how
they use the Sonic in creative and unusual ways. We will also distribute new point-of-purchase
displays to support our retailers.
• April. We will hold a trade sales contest offering prizes for the salesperson and retail organization
that sells the most Sonic smart phones during the four-week period.
• May. We plan to roll out a new national advertising campaign this month. The radio ads will
feature celebrity voices telling their Sonic smart phones to perform functions such as initiating
a phone call, sending an e-mail, playing a song or video, and so on. The stylized print and
online ads will feature avatars of these celebrities holding their Sonic smart phones. We plan to
repeat this theme for next year’s product launch.
• June. Our radio campaign will add a new voice-over tagline promoting the Sonic 1000 as a
graduation gift. We will exhibit at the semiannual electronics trade show and provide retailers
with new competitive comparison handouts as a sales aid. In addition, we will analyze the
results of customer satisfaction research for use in future campaigns and product development
efforts.
Programs should coordinate with
the resources and activities of
other departments that contribute
to customer value for each
product.
3.6 Marketing Research Using research, we will identify specific features and benefits our target
market segments value. Feedback from market tests, surveys, and focus groups will help us
develop and fine-tune the Sonic All Media 2000. We are also measuring and analyzing customers’
attitudes toward competing brands and products. Brand awareness research will help us determine
the effectiveness and efficiency of our messages and media. Finally, we will use customer satisfaction
studies to gauge market reaction.
This section shows how marketing
research will support the
development, implementation, and
evaluation of marketing strategies
and programs.
4.0 Financials
Total first-year sales revenue for the Sonic 1000 is projected at $200 million, with an average wholesale
price of $250 per unit and variable cost per unit of $150 for unit sales volume of 800,000. We
anticipate a first-year loss of up to $40 million. Break-even calculations indicate that the Sonic 1000
will become profitable after the sales volume exceeds 267,500 during the product’s second year. Our
break-even analysis assumes per-unit wholesale revenue of $250 per unit, variable cost of $150 per
unit, and estimated first-year fixed costs of $26,750,000. With these assumptions, the break-even
calculation is:
Financials include budgets and
forecasts to plan for marketing
expenditures, scheduling, and
operations.
26,750,000
$250 - $150 = 267,500 units Appendix A7
5.0 Controls
Controls are being established to cover implementation and the organization of our marketing
activities.
5.1 Implementation We are planning tight control measures to closely monitor quality and customer
service satisfaction. This will enable us to react very quickly in correcting any problems that
may occur. Other early warning signals that will be monitored for signs of deviation from the plan
include monthly sales (by segment and channel) and monthly expenses.
5.2 Marketing Organization Sonic’s chief marketing officer, Jane Melody, holds overall
responsibility for all of the company’s marketing activities. Exhibit A.3 shows the structure
Controls help management
measure results and identify any
problems or performance variations
that need corrective action.
The marketing department may be
organized by function, as in this
sample, or by geography, product,
customer, or some combination of
these.